Cash.gifThe saying goes that “Cash is King.” However, entrepreneurs often quickly learn (sometimes in painful ways) that it is Cash Flow that is really King. Run a quick Google search for “accounts receivable” financing or factoring to get a sense of how important that market is for businesses. Working for a telecommunications manufacturer, I can

crystalball25942067.jpgLast month, I wrote about the Obama Administration’s Presidential Memorandum to the U.S. Department of Labor (DOL) instructing its Secretary to update regulations regarding overtime protection for workers under the Fair Labor Standards Act (FLSA), the federal law that establishes minimum wage and overtime pay requirements.  Since then, DOL Secretary Perez has spoken publicly about

Obama.jpgRecently, we told you about President Obama’s Executive Order increasing the minimum wage for employees of federal contractors to $10.10 per hour. Tomorrow, President Obama is expected to announce that he will sign two new executive orders that will apply to federal contractors: (1) one order will forbid retaliation by federal contractors against employees that discuss their compensation with other employees; and (2) the other order will require federal contractors to maintain certain records on compensation organized by race and gender, and report that data to the federal government. These Orders are being issued to further advance the Administration’s cause of equal pay for women.

Approximately 25% of the U.S. workforce engages in federal contracting at least in part, including large, well-known businesses like Northrop Grumman and Boeing and a host of smaller manufacturers, suppliers, and service companies. Unlike the recent minimum wage order, which applied only to new and certain renewed contracts because of the change in compensation rates, these orders could be implemented immediately and apply to all contractors, making these orders’ potential impact much wider.

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US Department of Labor logo.jpgRecently on Twitter, I commented that revising the FLSA regulations won’t be quick or easy. Speaking of Twitter, if you’re not following @WageHourInsight yet, why not? I find lots of interesting tidbits every day that don’t make it here to the blog, and you can follow along with some of the more free-wheeling conversations HR professionals have on the very same topics we discuss here. 

My comment on Twitter should come with the added caveat: if they’re revised correctly. Merely increasing the minimum salary (the focus of the Secretary’s recent blog post) for the white collar exemption is not enough. Want some examples? DOL Secretary Perez referred to the Family Dollar case as an example of where the “primary duty” test revisions by the Bush administration swept up far more employees than he believes the FLSA intended. Need another? Tip credits. 

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Guest Blogger: Sunghee W. Sohn

iStock_WageIncrease.XSmall.jpgOn February 12, 2014, President Obama increased the minimum wage for federal contractors and subcontractors by an Executive Order to $10.10 per hour. This announcement comes on the heels of 13 states and 4 cities that also raised their own state and local minimum wages in 2014. Effective January 1, 2015, the federal contractors’ minimum wage will be the highest minimum wage in the country.

Which federal contractors are subject to the new minimum wage?

The Executive Order states federal contractors who receive new contracts on or after January 1, 2015 will be responsible for paying the new minimum wage. In addition, only contractors who win new contracts for procurement of services or construction, services covered by the Service Contract Act, concessions, and services in connection with federal property or lands will be subject to the new minimum wage. The government is expected to issue regulations by April 12, 2014 that will include three exclusions from the requirement. It is still unclear as to what classification of federal contractor or work will be excluded from the Executive Order. Employers who believe they will be impacted should begin to analyze and prepare their budgets, payroll, benefits and, for some, collective bargaining obligations in light of the order.

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In his fifth State of the Union speech, President Obama announced that he planned to issue an executive order raising the minimum wage for workers under new federal contracts to $10.10 per hour, up from the current federal minimum wage of $7.25 an hour and higher than the $9.00 per hour rate the president sought

iStock_WageIncrease.XSmall.jpgWith the New Year comes a minimum wage increase in 10 states:  Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Rhode Island, Vermont and Washington.  Each of these states has a higher minimum wage rate than the federal minimum of $7.25/hour.  Employers in these states are required to pay the higher state minimum wage.

In addition